41) Which of the following best defines internal equity?
A) how a job's pay rate in one company compares to the job's pay rate in other companies
B) how fair the job's pay rate is, when compared to other jobs within the same company
C) the fairness of an individual's pay as compared to a coworker's pay for the same job
D) the perceived fairness of the processes and procedures used to make compensation decisions
E) the use of salary surveys and job evaluation comparisons to monitor pay levels within an industry
42) Which of the following is used to maintain internal equity?
A) job analysis comparisons
B) organizational charts
C) incentive pay
D) salary surveys
E) HR scorecards
43) Managers use performance appraisals and incentive pay to maintain ________ equity.
A) internal
B) external
C) individual
D) procedural
E) group
44) What is the first step in the process of establishing pay rates to ensure external equity?
A) using wage curves to price each pay grade
B) analyzing a scatter plot of employee pay
C) comparing performance appraisals
D) conducting a salary survey
E) checking online pay sites
45) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers.
Which of the following, if true, supports the argument that Homelife executives should primarily address internal equity issues when developing a new compensation plan?
A) Most of Homelife's former employees are now employed at competitor's stores in similar positions.
B) Homelife employees receive annual performance appraisals at which time they set career goals.
C) Salary surveys indicate dissatisfaction among the Homelife managers in different departments.
D) Online pay sites show the pay range for sales associates at both Homelife and its competitors.
E) Homelife pays its sales managers commissions in addition to base salaries and health benefits.
46) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers.
Which of the following, if true, supports the argument that Homelife should distribute salary surveys before establishing new pay rates?
A) Homelife executives want to identify benchmark jobs before determining the worth of other jobs.
B) Homelife executives plan to use the compensable factors emphasized by the Equal Pay Act.
C) Computerized job evaluation systems will be used by Homelife to generate questionnaires.
D) A wage curve needs to be established by Homelife for the purpose of federal compliance.
E) Only Homelife store managers are classified as professional , so job evaluation is unnecessary.
47) Which of the following is used to anchor the employer's pay scale?
A) job aid
B) grades
C) job metric
D) benchmark job
E) human resource metric
48) Which of the following terms refers to a systematic comparison done in order to determine the worth of one job relative to another?
A) job rotation
B) job analysis
C) job evaluation
D) job description
E) job classification
49) Which of the following is NOT one of the compensable factors emphasized in the Equal Pay Act?
A) skills
B) effort
C) accountability
D) responsibility
E) working conditions
50) Central basic factors that establish how several jobs compare to one another and that determine the pay for each job are called ________.
A) compensable factors
B) job evaluation factors
C) comparison factors
D) ranking factors
E) analysis factors